O'Malley's office said that state officials are reviewing the decision to determine the next steps. Maryland officials can appeal the Commerce Department's decision in U.S. District Court.
"The proposed LNG project at Sparrow's Point represents a threat to our homeland security, a threat to our environment and Chesapeake Bay and a threat to the families of eastern Baltimore County," O'Malley said in the statement. "The overturning of MDE's original decision to deny Coastal Zone Consistency enhances this threat."
Yesterday's finding does not resolve a separate legal dispute over whether Baltimore County can ban LNG facilities in environmentally sensitive waterfront areas, as part of its federally sanctioned Coastal Zone Management plan. Because of a federal appeals court ruling last month finding fault with the county's ban, officials have asked for federal approval of its amended coastal zone management plan.
"It seems strange that a decision would come out on a day when the price of oil reached a record high, saying it makes good national policy to increase our foreign sources of energy," said Donald I. Mohler III, a county spokesman.
When AES announced its plans two years ago, the project was met with almost instant opposition. Concerned about how close the terminal and pipeline would be to homes and schools, community groups formed to lobby against the plan, federal and state lawmakers unsuccessfully proposed laws to ban the LNG terminal, and local officials sought a legal maneuver to stop the project.
But union leaders have long supported the project because of the jobs it would create, including 50 permanent jobs and 375 temporary construction positions.
This year, Federal Energy Regulatory Commission staff members recommended conditional approval for the LNG project. A final report from FERC is expected in August, with the five-member commission tentatively set to make a decision about the project in November.
The Army Corps of Engineers is reviewing the company's request to dredge an 118-acre area in the Patapsco River.
laura.barnhardt@baltsun.com
